To address the Alternative Connect America Cost Model (A-CAM) budget shortfall, the FCC has issued an Order and Further Notice of Proposed Rulemaking (FNPRM) that (1) allocates an additional $50 million and (2) requests comment on whether to increase the A-CAM budget along with increased broadband deployment obligations. For the 191 carriers that opted for model-based support and for which A-CAM funding was higher than legacy support, the FCC has released revised offers (available at https://transition.fcc.gov/wcb/ACAM_232_second_offer_report_10_1_2_122016_FINAL.xlsx) with lower funding levels and less aggressive deployment schedules. Such carriers will face a 30-day deadline (i.e., until January 19, 2017) to decide whether to accept the revised offers. For the 35 so-called “glide path carriers” that opted for model-based support and for which A-CAM support is less than the legacy support, their support elections are locked in and authorized.
In its FNPRM, the FCC requests comment on whether to additionally increase the A-CAM budget for model-based support and, if an increased budget were insufficient to cover all participants, whether to prioritize funding offers based on greater deployment need. The FCC notes that the budget would need to increase an additional $110 million if the revised offers were accepted or by a lesser amount if fewer accept. Comments will be due 30 days after the FNPRM’s publication in the Federal Register, which has not yet happened.
